%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment Software company turned serial %Bitcoin (CRYPTO: $BTC ) acquirer %Strategy (NASDAQ: $MSTR ) could see its stock added to the benchmark S&P 500 index this year. Analysts say the inclusion of Strategy, until recently known as MicroStrategy, could happen when the S&P 500 index next undertakes a rebalancing this coming June. The Washington, D.C.-based company meets all the eligibility requirements except one: achieving positive net income over the previous 12 months (most recent four quarters). To qualify, Q1 2025 earnings must be high enough to offset losses from the previous three quarters—a goal that could be achieved due to Strategy’s adoption of the Financial Accounting Standards Board (FASB) digital asset accounting rule. The FASB rule requires companies to recognize Bitcoin holdings at their current fair market value, meaning price gains will flow through to the bottom line. Previously, corporate holders of Bitcoin and other crypto were required to account for holdings at their weakest levels. Strategy, for example, in the fourth quarter of 2024 still valued its Bitcoin at less than $16,000 U.S. per token, leading to a $1 billion U.S. impairment loss. According to one analyst, Richard Hass, Bitcoin must close the first quarter above $96,337 U.S. for Strategy to meet the positive trailing 12-month earnings requirement. If Bitcoin’s price remains strong and Strategy continues accumulating the digital token, S&P 500 inclusion is within its grasp. In a research note to clients, Benchmark analyst Mark Palmer wrote: “MSTR’s adoption of the amended FASB guidance strengthens its case for S&P 500 inclusion.” Palmer added that “the S&P 500 is the holy grail” in terms of index inclusion. Stocks that are added to major indices such as the S&P 500 tend to get a boost as exchange-traded funds (ETFs) and mutual funds that track the index are required to buy their shares. Palmer states that Strategy’s inclusion in the S&P 500 would validate the company’s Bitcoin buying, and, as all S&P 500 index funds would hold MSTR shares, indirectly expose investors to Bitcoin. The stock of Strategy has risen 379% over the last 12 months to trade at $337.73 U.S. a share. Bitcoin is currently trading at $96,400 U.S., having risen 87% over the past year.